Ofcom, UK telecoms regulator, has recently announced that after its spectrum auction, the winning bidders will be able to later on re-sell it to rivalling companies.

According to the authority, this will help to boost performance and capacity resulting in better rural coverage.

Ofcom issued a statement which said:

"There are 80 million mobiles in the UK and more than 12.8 million of these are smartphones, used by people to access the internet. This is placing big demands on mobile spectrum.

"The new regulations, which cover spectrum at 900MHz, 1,800MHz and 2,100MHz, are aimed at giving operators added flexibility, which could help them to meet some of these demands."

The regulator also noted that the move will allow mobile operators which don't own a sufficient amount of spectrum to have the option to get it, however it has been argued that due to rapid rises in traffic rates, companies might not want to consider selling it off.

Mobile operator, O2, which previously voiced concerns about the spectrum auction, has reportedly welcomed the decision.